BUS J401 Practice Exam 2 Graded A
BUS J401 Practice Exam 2 Graded A
BUS J401 Practice Exam 2 Graded A
, BUS J401 Practice Exam 2 Graded A
BUS J401 Practice Exam 2
SMCh5-8 Key
1. The primary aim of strategic management at the business level is .
A. maximizing risk-return tradeoffs through diversification
B. achieving a low cost position
C. maximizing differentiation of products and/or services
D. achieving competitive advantage
How firms compete with each other and how they attain and sustain competitive advantages goes
to the heart of strategic management. In short, the key issue becomes to identify why some firms
outperform others and enjoy such advantages over time.
AACSB:
Analytic Blooms:
Remember Dess -
Chapter 05 #47
Learning Objective: 05-01 The central role of competitive advantage in the study of strategic management; and the three generic strategies: overall cost leadership;
differentiation; and focus.
Level of Difficulty: 1 Easy
Topic: Types of Competitive Advantage and Sustainability
2. Primary value chain activities that involve the effective layout of receiving dock operations (inbound
logistics) and support value chain activities that include expertise in process engineering (technology
development) characterize what generic strategy?
A. differentiation
B. differentiation focus
C. overall cost leadership
D. stuck-in-the-middle
Examples of overall cost leadership within primary value chain activities may involve the effective
layout of receiving dock operations (inbound logistics) and support value chain activities may include
expertise in process engineering (technology development).
AACSB:
Analytic Blooms:
Understand Dess -
Chapter 05 #48
Learning Objective: 05-01 The central role of competitive advantage in the study of strategic management; and the three generic strategies: overall cost leadership;
differentiation; and focus.
Level of Difficulty: 2
Medium
Topic: Types of Competitive Advantage and Sustainability
3. A manufacturing business pursuing cost leadership is likely to .
A. focus on a narrow market segment
B. use advertising to build brand image
C. rely on experience effects to raise efficiency
D. put heavy emphasis on product engineering
Key to an overall cost leadership strategy is the experience curve, which refers to how business
learns to lower costs as it gains experience with production processes. With experience, unit costs of
production decline as output increases in most industries.
BUS J401 Practice Exam 2 Graded A
,BUS J401 Practice Exam 2 Graded A
AACSB:
Analytic Blooms:
Understand Dess -
Chapter 05 #49
Learning Objective: 05-01 The central role of competitive advantage in the study of strategic management; and the three generic strategies: overall cost leadership;
differentiation; and focus.
BUS J401 Practice Exam 2 Graded A
, BUS J401 Practice Exam 2 Graded A
BUS J401 Practice Exam 2
Level of Difficulty: 2 Medium
Topic: Types of Competitive Advantage and Sustainability
BUS J401 Practice Exam 2 Graded A
BUS J401 Practice Exam 2 Graded A
BUS J401 Practice Exam 2 Graded A
, BUS J401 Practice Exam 2 Graded A
BUS J401 Practice Exam 2
SMCh5-8 Key
1. The primary aim of strategic management at the business level is .
A. maximizing risk-return tradeoffs through diversification
B. achieving a low cost position
C. maximizing differentiation of products and/or services
D. achieving competitive advantage
How firms compete with each other and how they attain and sustain competitive advantages goes
to the heart of strategic management. In short, the key issue becomes to identify why some firms
outperform others and enjoy such advantages over time.
AACSB:
Analytic Blooms:
Remember Dess -
Chapter 05 #47
Learning Objective: 05-01 The central role of competitive advantage in the study of strategic management; and the three generic strategies: overall cost leadership;
differentiation; and focus.
Level of Difficulty: 1 Easy
Topic: Types of Competitive Advantage and Sustainability
2. Primary value chain activities that involve the effective layout of receiving dock operations (inbound
logistics) and support value chain activities that include expertise in process engineering (technology
development) characterize what generic strategy?
A. differentiation
B. differentiation focus
C. overall cost leadership
D. stuck-in-the-middle
Examples of overall cost leadership within primary value chain activities may involve the effective
layout of receiving dock operations (inbound logistics) and support value chain activities may include
expertise in process engineering (technology development).
AACSB:
Analytic Blooms:
Understand Dess -
Chapter 05 #48
Learning Objective: 05-01 The central role of competitive advantage in the study of strategic management; and the three generic strategies: overall cost leadership;
differentiation; and focus.
Level of Difficulty: 2
Medium
Topic: Types of Competitive Advantage and Sustainability
3. A manufacturing business pursuing cost leadership is likely to .
A. focus on a narrow market segment
B. use advertising to build brand image
C. rely on experience effects to raise efficiency
D. put heavy emphasis on product engineering
Key to an overall cost leadership strategy is the experience curve, which refers to how business
learns to lower costs as it gains experience with production processes. With experience, unit costs of
production decline as output increases in most industries.
BUS J401 Practice Exam 2 Graded A
,BUS J401 Practice Exam 2 Graded A
AACSB:
Analytic Blooms:
Understand Dess -
Chapter 05 #49
Learning Objective: 05-01 The central role of competitive advantage in the study of strategic management; and the three generic strategies: overall cost leadership;
differentiation; and focus.
BUS J401 Practice Exam 2 Graded A
, BUS J401 Practice Exam 2 Graded A
BUS J401 Practice Exam 2
Level of Difficulty: 2 Medium
Topic: Types of Competitive Advantage and Sustainability
BUS J401 Practice Exam 2 Graded A
